ROBINSON, District Judge.
On October 3, 2014, Takeda Pharmaceuticals U.S.A., Inc. ("Takeda") filed suit against West-Ward Pharmaceutical Corporation, Hikma Americas Inc., and Hikma Pharmaceuticals PLC (collectively, "Hikma"), asserting induced infringement of five patents under 35 U.S.C. § 271(b).
Hikma has launched the accused product, Mitigare™, an oral single-ingredient colchicine product, "indicated for prophylaxis of gout flares in adults." (D.I. 1, ex. H at 1) Although Mitigare™ has the same active ingredient, route of administration, and strength as Colcrys®, Hikma did not file its application with the Food and Drug Administration (FDA) as an Abbreviated New Drug Application ("ANDA"). Instead, Hikma sought approval through the New Drug Application ("NDA") pathway under § 505(b)(2) of the Hatch-Waxman Act. Moreover, in its proposed label, Hikma has omitted specific mention of uses for which Takeda has patent protection.
On October 5, 2014, Takeda requested a temporary restraining order ("TRO") to preserve the status quo while the parties more fully briefed (and the court considered) Takeda's motion for a preliminary injunction. (D.I. 5) On October 9, 2014, the court issued a memorandum order granting Takeda's motion for a TRO. (D.I. 21) The parties jointly stipulated to extend the period for which the TRO was in force through the end of November 4, 2014. (D.I. 54) The court reviewed Takeda's motion for a preliminary injunction and concluded that "[b]ecause Takeda has failed to demonstrate that it will likely prove induced infringement at trial or suffer irreparable harm, the extraordinary relief sought is not warranted." (D.I. 78 at 15) The court also concluded that, "given the significance of this dispute to both parties, [the court] will maintain the status quo pending appeal if: (1) Takeda takes an immediate appeal and requested expedited review of both the merits and this ruling by the Federal Circuit; and (2) the conditions included in [the court's] order of October 31, 2014 (D.I. 72) continue to govern the conduct of the parties, except that the bond shall increase $500,000 per day until further order of this court or the Federal Circuit." (Id.)
On November 5, 2014, Takeda filed a notice of appeal to the United States Court of Appeals for the Federal Circuit, appealing the order denying its motion for preliminary injunction and seeking expedited review. (D.I. 80) Hikma then filed a notice of cross appeal to the Federal Circuit on November 10, 2014. (D.I. 82) On appeal, the Federal Circuit affirmed this court's order denying Takeda's motion for a preliminary injunction. Takeda Pharmaceuticals U.S.A., Inc. v. West-Ward Pharmaceutical Corp., 785 F.3d 625, 627 (Fed.Cir. 2015). On September 10, 2015, Takeda filed
In its amended complaint, Takeda alleges that Hikma's Mitigare™ products induce infringement of the Acute Flare Patents, and supports this claim with allegations related to the Mitigare™ and Mitigare™ AG product labels, Hikma's FDA correspondence, and Hikma's marketing and sales activities. The amended complaint also alleges induced infringement of the DDI Patents and supports this claim with allegations related to the Mitigare™ and Mitigare™ AG product labels and Hikma's FDA correspondence.
In asserting that Hikma infringes its Acute Flare Patents, Takeda describes three aspects of Hikma's Mitigare™ product: the Mitigare™ and Mitigare™ AG product labels, Hikma's correspondence with the FDA, and Hikma's marketing and sales activities.
Takeda states that "Colcrys® is approved for both prophylaxis and treatment of acute gout flares, while Mitigare™ is approved only for prophylaxis. Nevertheless, the same 0.6 mg of colchicine can and is being used for either prophylaxis or treatment of acute gout flares." (D.I. 109 at ¶ 35) Takeda then describes the Mitigare™ product label which instructs patients: "If you have a gout flare while taking Mitigare™, tell your healthcare provider." (Id. at ¶ 36) Takeda asserts that this instruction means that "[w]ith respect to acute treatment, upon information and belief, [Hikma] know[s] and intend[s] that healthcare providers will prescribe the Mitigare™ Products for the treatment of acute gout flares according to the Colcrys® product label and the [American College of Rheumatology] guidelines [ ]." (Id.) Further, Takeda states that the only reference in the product labels to the treatment of acute gout flares is a statement that "the safety and effectiveness of Mitigare™ [or "colchicine capsules"] for acute treatment of gout flares during prophylaxis has not been studied." (Id. at ¶ 37) (alterations in original). Takeda bolsters this statement by alleging that while Hikma "may not have performed studies" to examine the effect of its capsule product in treating acute gout flares, Hikma is aware that Mutual, a pharmaceutical company and former affiliate of Takeda, "did study the safety and effectiveness of its pharmacologically-identical 0.6 mg colchicine tablet product in treating acute gout flares, as described in the Colcrys® product labeling." (Id.) Finally, Takeda states that the medication guides for Hikma's products "do not instruct patients to refrain from taking [Mitigare™] for treatment of acute gout flares[,] [n]or do they prescribe the proper dosage of [Mitigare™]." (Id. at ¶ 38)
Takeda states that the FDA "recognized the high likelihood that a drug suitable both for the treatment and the prophylaxis of acute gout flares likely would be prescribed for both," and that the FDA consequently informed Hikma that "if Mitigare is being used for prophylaxis, it may be natural for the provider to use it for acute treatment as well." (Id. at ¶ 41) According to Takeda, Hikma's product label stating "If you have a gout flare while taking Mitigare™, tell your healthcare provider" indicates that Hikma "intended to encourage and facilitate the use of [Mitigare] to
Takeda alleges that Hikma's October 3, 2014 domestic launch of Mitigare™ and its January 9, 2015 domestic launch of Mitigare™ AG are indicative of efforts by Hikma to "manufacture, advertise, promote, market, offer to sell, and sell the Mitigare™ Products to compete directly with Colcrys®[ ]." (Id. at ¶¶ 43-45) In support of this assertion, Takeda proffers that Hikma's representatives informed prescribers that "thirty capsules of Mitigare™ ... could last a patient up to one year." (Id. at ¶ 48) Takeda states that Hikma's "sales representatives have also explicitly informed prescribers that [Mitigare] can be used to treat acute gout flares." (Id.) Further, Takeda states that Hikma has entered into at least two "sole-source contracts" with specific insurance providers that "effectively guarantee that, for all patients covered by these insurance providers, the only single oral colchicine option available to them for the treatment of acute gout flares will be [Mitigare™] or [Mitigare™] AG product."
In describing Hikma's alleged infringement of the DDI Patents, Takeda focuses on the Mitigare product labels and Hikma's FDA correspondence.
Takeda alleges that the Mitigare product labels instruct doctors and patients that, "when coadministering [Mitigare™] with CYP3A4 or P-gp inhibitors, the dose of [Mitigare™] should be adjusted by either reducing the daily dose or reducing the dose frequency, and the patient should be monitored for colchicine toxicity."
Takeda states that the FDA denied more than one of Hikma's proposed product labels and that, when Hikma conducted its own drug-drug interaction study, the FDA found the study's results non-conclusive. Takeda further states that "[t]he only specific instructions for how to reduce colchicine dosages when the drug is coadministered with the CYP3A4 or P-gp inhibitors are the patented dosing reductions contained in the COLCRYS® label, which the [American College of Rheumatology] has adopted as the standard of care for colchicine treatment." (Id. at ¶ 62) According to Takeda, this demonstrates that Hikma "knew and intended, or [was] willfully blind to the fact that at least some physicians, pharmacists, or healthcare organizations, would consult the FDA-approved COLCRYS® label and/or the [American College of Rheumatology] guidelines to determine the specific amount of dose reductions required for concomitant administration with CYP3A4 and/or P-gp inhibitors." (Id.)
A motion filed under Federal Rule of Civil Procedure 12(b)(6) tests the sufficiency of a complaint's factual allegations. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007); Kost v. Kozakiewicz, 1 F.3d 176, 183 (3d Cir.1993). A complaint must contain "a short and plain statement of the claim showing that the pleader is entitled to relief, in order to give the defendant fair notice of what the ... claim is and the grounds upon which it rests." Twombly, 550 U.S. at 545, 127 S.Ct. 1955 (internal quotation marks omitted) (interpreting Fed. R. Civ. P. 8(a)). Consistent with the Supreme Court's rulings in Twombly and Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009), the Third Circuit requires a two-part analysis when reviewing a Rule 12(b)(6) motion. Edwards v. A.H. Cornell & Son, Inc., 610 F.3d 217, 219 (3d Cir.2010); Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir.2009). First, a court should separate the factual and legal elements of a claim, accepting the facts and disregarding the legal conclusions. Fowler, 578 F.3d at 210-11. Second, a court should determine whether the remaining well-pled facts sufficiently show that the plaintiff "has a `plausible claim for relief.'" Id. at 211 (quoting Iqbal, 556 U.S. at 679, 129 S.Ct. 1937). As part of the analysis, a court must accept all well-pleaded factual allegations in the complaint as true, and view them in the light most favorable to the plaintiff. See Erickson v. Pardus, 551 U.S. 89, 94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007); Christopher v. Harbury, 536 U.S. 403, 406, 122 S.Ct. 2179, 153 L.Ed.2d 413 (2002); Phillips v. Cnty. of Allegheny, 515 F.3d 224, 231 (3d Cir.2008). In this regard, a court may consider the pleadings, public record, orders, exhibits attached to the complaint, and documents incorporated into the complaint by reference. Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322, 127 S.Ct. 2499, 168 L.Ed.2d 179 (2007); Oshiver v. Levin, Fishbein, Sedran & Berman, 38 F.3d 1380, 1384-85 n. 2 (3d Cir.1994).
The court's determination is not whether the non-moving party "will ultimately prevail," but whether that party is "entitled to offer evidence to support the claims." United States ex rel. Wilkins v. United Health Grp., Inc., 659 F.3d 295, 302 (3d Cir.2011). This "does not impose a probability requirement at the pleading stage," but instead "simply calls for enough facts to raise a reasonable expectation that discovery will reveal evidence of [the necessary element]." Phillips, 515 F.3d at 234 (quoting Twombly, 550 U.S. at 556, 127 S.Ct. 1955). The court's analysis is a context-specific task requiring the court "to draw on its judicial experience and common
To establish indirect infringement, a patent owner has available two theories: active inducement of infringement and contributory infringement. See 35 U.S.C. § 271(b) & (c). Liability for indirect infringement may arise "if, but only if, [there is] ... direct infringement." Limelight Networks, Inc. v. Akamai Technologies, Inc., ___ U.S. ___, 134 S.Ct. 2111, 2117, 189 L.Ed.2d 52 (2014) (citing Aro Mfg. Co. v. Convertible Top Replacement Co., 365 U.S. 336, 341, 81 S.Ct. 599, 5 L.Ed.2d 592 (1961) (emphasis omitted)).
Under 35 U.S.C. § 271(b), "whoever actively induces infringement of a patent shall be liable as an infringer." "To prove induced infringement, the patentee must show direct infringement, and that the alleged infringer knowingly induced infringement and possessed specific intent to encourage another's infringement." Toshiba Corp. v. Imation Corp., 681 F.3d 1358, 1363 (Fed.Cir.2012) (internal quotations omitted). "[I]nduced infringement under § 271(b) requires knowledge that the induced acts constitute patent infringement." Global-Tech Appliances, Inc. v. SEB S.A., 563 U.S. 754, 766, 131 S.Ct. 2060, 179 L.Ed.2d 1167 (2011). The knowledge requirement can be met by a showing of either actual knowledge or willful blindness. See id. "[A] willfully blind defendant is one who takes deliberate actions to avoid confirming a high probability of wrongdoing and who can almost be said to have actually known the critical facts." Id. at 769, 131 S.Ct. 2060 (citation omitted). "[I]nducement requires evidence of culpable conduct, directed to encouraging another's infringement, not merely that the inducer had knowledge of the direct infringer's activities." DSU Medical Corp. v. JMS Co., Ltd., 471 F.3d 1293, 1306 (Fed. Cir.2006) (en banc in relevant part) (citations omitted).
To establish contributory infringement, the patent owner must demonstrate the following: (1) an offer to sell, sale, or import; (2) a component or material for use in a patented process constituting a material part of the invention; (3) knowledge by the defendant that the component is especially made or especially adapted for use in an infringement of such patents; and (4) the component is not a staple or article suitable for substantial non-infringing use. See Fujitsu Ltd. v. Netgear Inc., 620 F.3d 1321, 1326 (Fed.Cir. 2010) (citing 35 U.S.C. § 271(c)). Defendant "must know `that the combination for which his component was especially designed was both patented and infringing.'" Global-Tech, 563 U.S. at 763, 131 S.Ct. 2060 (citing Aro Mfg. Co. v. Convertible Top Replacement Co., 377 U.S. 476, 488, 84 S.Ct. 1526, 12 L.Ed.2d 457 (1964)).
In Takeda, the Federal Circuit stated that "[i]nducement can be found where there is evidence of active steps taken to encourage direct infringement, which can in turn be found in advertising and infringing use or instructing how to engage in an infringing use." Takeda, 785 F.3d at 630-31 (citations and internal quotation marks omitted). Further, the court held that "mere knowledge of possible infringement by others does not amount to inducement; specific intent and action to induce infringement must be proven." Id. at 631 (citations omitted).
The Federal Circuit's decision in Warner-Lambert Co. v. Apotex Corp., 316 F.3d 1348 (Fed.Cir.2003), sets the framework for analyzing the issue at bar.
On appeal, the Federal Circuit expressed concern that permitting a cause of action under § 271(e)(2) for off-label method of use patents would "confer substantial additional rights on pioneer drug patent owners that Congress quite clearly did not intend to confer." Warner-Lambert, 316 F.3d at 1359. Moreover, the panel determined that "Warner-Lambert would have needed to demonstrate the existence of a genuine issue of material fact to support a traditional infringement claim, i.e., that Apotex induced or will induce infringement of the neurodegenerative method patent." Id. at 1356. Upon considering Warner-Lambert's cause of action under § 271(b), the Court concluded that, "[i]n the absence of any evidence that Apotex has or will promote or encourage doctors to infringe the neurodegenerative method patent, there has been raised no genuine issue of material fact." Id. at 1364. The Federal Circuit, therefore, affirmed the district court's grant of summary judgment, holding that a method of use patent holder may not bring an action under § 271(e)(2) for infringement of a method of use patent that does not claim a FDA-approved use. See also Allergan, Inc. v. Alcon Laboratories, Inc., 324 F.3d 1322 (Fed.Cir.2003) (holding the generic drug applicant could not be liable for infringement under § 271(e)(2)(A), even though brimonidine had other uses not approved by the FDA for which the drug was effective in patients who took the drug for the approved purpose of reducing intraocular pressure).
More recently, the Federal Circuit addressed the Warner-Lambert construct at the pleading stage in AstraZeneca Pharmaceuticals LP v. Apotex Corp., 669 F.3d 1370
In addition to the two treatment indications claimed in the aforementioned patents, rosuvastatin calcium is also approved for uses not claimed by either of these patents, including the treatment of patients with homozygous familial hypercholesterolemia ("HoFH") or hypertriglyceridemia. The defendant generic pharmaceutical companies filed ANDAs seeking to market generic rosuvastatin calcium for treating HoFH and hypertriglyceridemia while carving out the patented indications directed toward HeFH and elevated CRP. To do so, the generic manufacturers filed statements
AstraZeneca brought suit for infringement of its method of use patents, asserting that the ANDA filings infringed and would cause infringement of the method of use patents under § 271(e)(2). AstraZeneca alleged that: (1) the ANDAs violated § 271(e)(2) as applications for a drug, the use of which is claimed in the patents; (2) if approved by the FDA, the generic manufacturers' proposed activities will induce infringement of the patents; and (3) the FDA will require labeling amendments explicitly incorporating the indications covered by the patents. The district court dismissed AstraZeneca's infringement claims for lack of subject matter jurisdiction, finding that AstraZeneca had not presented a valid § 271(e)(2) claim based on the ANDA filings. AstraZeneca Pharmaceuticals LP v. Apotex Corp., 2010 WL 5376310 (D.Del. Dec. 22, 2010), aff'd, 669 F.3d 1370 (Fed.Cir 2012). The district court also held that AstraZeneca's claims were not ripe to the extent they relied on presumptive future labeling amendments. Id.
On appeal, the Federal Circuit disagreed with AstraZeneca's attempt to distinguish Warner-Lambert as involving a patent that claimed an unapproved or "off-label" use for which no generic could be approved through the ANDA process.
The Federal Circuit was also not persuaded by AstraZeneca's argument that pharmacists and doctors could substitute the generic product for all indications once the product became available, stating that finding infringement based on such speculative prescribing practices would enable infringement claims despite a Section viii statement and corresponding proposed labeling that explicitly and undisputedly carved out all patented indications for a particular product. Id. at 1380. Moreover, the Court expressed concern that a pioneer drug manufacturer could maintain de facto indefinite exclusivity over a pharmaceutical compound by obtaining serial patents for approved methods of using the compound and then wielding § 271(e)(2) as a sword against any competitor's ANDA seeking approval to market an off-patent drug for an approved use. Id. Accordingly, the Federal Circuit affirmed the district court's dismissal of AstraZeneca's complaint.
The above reasoning applies to the case at bar. Takeda's Colcrys® drug is approved and used to treat and prevent acute gout flares, while Hikma's Mitigare™ is approved solely to prevent gout flares. To this point, the Mitigare™ label warns that "[t]he safety and effectiveness of MITIGARE™ for acute treatment of gout flares during prophylaxis has not been studied." (D.I. 109, ex. K at 1) Like the generic in AstraZeneca, Hikma has specified that Mitigare™ is for the prevention of gout flares and warned that its drug is not indicated for the treatment of acute gout flares. Allowing Takeda to proceed with its claims would be akin to allowing Takeda to expand the scope of its exclusivity over the treatment of gout with colchicine.
Specifically with respect to induced infringement, the Federal Circuit has stated that "[t]he pertinent question is whether the proposed label instructs the users to perform the patented method. If so, the proposed label may provide evidence of [the generic's] affirmative intent to induce infringement." AstraZeneca LP v. Apotex, Inc., 633 F.3d 1042, 1060 (Fed.Cir.2010). "The question is not ... whether a user following the instructions may end up using the device in an infringing way. Rather, it is whether [the] instructions teach an infringing use of the device such that we are willing to infer from those instructions an affirmative intent to infringe the patent." Vita-Mix Corp. v. Basic Holding, Inc., 581 F.3d 1317, 1329 n. (Fed.Cir.2009); Bayer Schering Pharma AG v. Lupin, Ltd., 676 F.3d 1316, 1322 (Fed.Cir.2012) ("The question to be answered, then, is whether the FDA has approved the use of Yasmin to achieve the combination of the three effects claimed in the '652 patent."). In sum, the Federal Circuit has not found infringement when the product label does not address the patented methods.
Takeda's arguments regarding Hikma's marketing and sales activities similarly fail. To survive a motion to dismiss, Takeda is charged with providing adequate factual allegations that set forth a plausible claim for relief such that there is a reasonable expectation that discovery will uncover relevant evidence. Despite the marketing of Mitigare™ for at least ten months, Takeda offers no such allegations. In this regard, Takeda added two allegations to its amended complaint based "upon information and belief," one concerning Mitigare™ sales representatives (D.I. 109 at ¶¶ 48-49)
Turning to the DDI Patents and based on the record currently before it, the court maintains its finding that Takeda has not adequately alleged direct (and consequently, induced) infringement. Direct infringement of the DDI Patents requires a 0.3 mg dose of colchicine per day; Mitigare™ is a 0.6 mg capsule that cannot be split.
For the foregoing reasons, the court grants Hikma's motion to dismiss. An appropriate order shall issue.